My brother had always insisted on using a debit card the entire time he went through high school and college. I never understood his obsession of avoiding a credit charge. Many times that we would go places and he couldn’t use the debit cards because the company only accepted credit charges.

At times like this, I was often the one who had to pay. I used my credit card to pay and he would pay me back the next day. He always paid me without fail. I always made an online payment as soon as he paid me. I knew he was afraid of bad credit because our parents had that problem and it took them almost 14 years to rebuild their credit. (more…)

The emergence of prepaid debit cards paved the way for hassle-free and secure cashless transactions practically everywhere where credit cards are accepted. Coming from one of the largest networks of payment cards, MasterCard prepaid cards are emblems of convenience, accessibility, and control.

These debit cards may be used for purchases in any establishment bearing the MasterCard logo. This translates to convenient shopping at millions of grocery stores, restaurants and gas stations, among other businesses. The use of the cards is not limited to brick and mortar stores. They may as well be utilized to transact with any Internet-based shop that accept MasterCard credit cards. Cardholders may also settle their bills online or by phone.

Prepaid cards from this premium provider also allow for total control over one’s expenses. Unlike credit accounts, they limit the users to their available balance, thereby preventing the risk of overspending. Debit cards also go without the interest and other additional charges associated with credit cards. Depending on the card provider, customers may make inquiries about their current balance through text messaging as well. (more…)

A lot of people are switching to debit cards for their loans and other financial needs. Although in terms of fees, they are much more favorable than getting a credit card, you would have to take note of risks involved in getting a debit card too.

First in the list is security. With a credit card, there is more protection. You would not be responsible for charges that are unauthorized and above $50. However, with a debit card, there are a lot more things for you to do in case it gets stolen. First, you have to report the theft or loss within two days. If you miss that deadline, you can still report it but be on the hook for around $500. After two months, however, you would have unlimited liability for that debit card. There are different policies for each company, so it is best if you consult and understand the proceedings well.

Your credit score would not increase with a debit card. No matter how many times you use it, you would not be able to improve your score. However, the records that are in your card would reflect that you are able to pay your bills on time. Also, they do not have provision for dispute once you have paid for charges made to it. (more…)